Hong Kong stands tall as global legal services hub and business magnet

I would like to offer a business perspective on the importance of and high regard for Hong Kong’s legal sector, a key facet underlying the city’s economic success.

According to the Law Society, there are nearly 940 local law firms and almost 90 foreign firms in the city. This makes Hong Kong one of the pre-eminent global legal hubs. The value of exports of legal services was around US$380 million in 2018.

Hong Kong is home to more than 9,000 international and mainland companies. As they do business around the region, along with the dynamic local business community, they benefit from the comprehensive range of specialist advice available. This includes corporate structuring, mergers and acquisitions, financing and capital markets, intellectual property, insolvency, regulatory and compliance, sustainability and, of course, our globally renowned arbitration services.

Statistics from the Hong Kong International Arbitration Centre (HKIAC) show that 318 arbitration cases were handled here last year, the highest in years. The total amount in dispute was close to US$9 billion, the highest since 2011. The vast majority of cases are seated here, too. From July to December 2020 – the six months following the introduction of the national security law – the HKIAC received 182 new cases, 39 per cent higher than the same period in 2019.

These facts are a testament to our reputation as an effective and neutral hub. This is backed by our day-to-day contact with companies from around the world. They tell us how important our legal and arbitration services are to their business operations and decisions to set up here.

China is commercially important to our international companies. The Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the courts of the mainland and of Hong Kong is a game-changer. The HKIAC has received applications covering assets of US$1.9 billion, and to date mainland courts have granted orders totalling US$1.5 billion.

Hong Kong is the only jurisdiction outside the mainland that can provide this service, setting us apart from other centres.

I see tremendous scope for further growth as a pre-eminent deal-making and dispute resolution centre. Hong Kong is the international hub in the Greater Bay Area, a high-potential region attracting interest from companies around the world. The Belt and Road Initiative drives new cross-border investments. Our growing role in green finance and family offices are additional avenues to growth. This means more demand for premium legal services.

As the world recovers from the Covid-19 pandemic, I have every confidence that Hong Kong will continue to be a leading global legal hub. That will help drive even more foreign investment, creating more jobs and leading to economic growth benefiting the people of Hong Kong.

Stephen Phillips, director-general of investment promotion, InvestHK